Your logistics strategy is one of the most important parts of your business operations. It can affect capital costs, human costs, operating costs, revenue growth, customer service, and a number of other areas. Using a 3PL (Third Party Logistics) provider can provide you with a number of benefits that can save you time and money. This is a list of the top 4 ways in which outsourcing logistics could benefit your company.
What are the Benefits of Outsourcing Logistics?
1. Time and Cost Effectiveness
Depending on the scope of your 3PL provider, you may be able to eliminate the cost of warehousing, technology investments, transportation and staff. Paperwork, billing, training and optimization are not your problem, so you’re free to allocate your time to other areas.
2. Network combinations
Established 3PL providers will already have an expansive international network to work with in addition to your own resources. They may be able to leverage their relationships by gaining access to volume discounts which results in lower costs and faster services.
The diverse number of past projects that your logistics team has handled will be one of the greatest assets in your relationship. Their experience with problems and the methods they’ve employed in order to overcome them will provide invaluable guidance when their planning your campaign.
If your project has initial success, then it will need to be scaled to match the demand created in the market. A 3PL provider will not only be equipped, but ready for this, as this is part of their plan for your product.